If the COVID-19 pandemic has exhausted your resources, creating serious cash flow problems, your existing car can come to your rescue and provide the liquidity support you need during these difficult times. A new product has entered the market that will offer customers a loan against their existing vehicles. So all your cash flow issues are taken care of while you continue to enjoy driving your car.

The unique loan offer came from automotive technology company CARS24. Their loan product will allow customers to get a loan on their used car. Traditionally, a customer gets a finance option only when they buy a new or used car.

According to CARS24 research, the number of customers selling their cars due to lack of cash has doubled compared to the pre-Corona era. Taking advantage of this opportunity, CARS24 will now grant loans to customers who do not wish to sell their car otherwise. This will help the clients to retain ownership of the asset and at the same time secure funds for their personal needs.

The company is making this service available to Delhi-NCR now and it will be available to customers in Bengaluru and Hyderabad by next month. It is proposed to extend the product to other metros by the end of fiscal 2020.

Customers applying for the loan on their car will benefit from features such as same day loan approval and disbursement, financing up to 100% from the last value of the car (for vehicles up to 12 years), the loan launch with minimal documentation (PAN, proof of address and bank statement) and additional benefits such as the installation of an anti-theft device and easy entry options, according to a press release from the business.

Sharing the announcement, Vandita Kaul, Vice President of CARS24, said: “We have seen many instances where people have expressed an interest in selling their cars to meet their financial needs. Knowing that owning a car is becoming a necessity these days, we have come up with an initiative for our clients to secure funds and hold their assets at the same time. So far we have disbursed loans worth Rs 35 lakh to our clients in this vertical and hope to strengthen this portfolio exponentially from here. “

(With IANS entries)

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